2007 Interactive Registration Document - Renault

HIGHLIGHTS IN GROUP NETWORK STRATEGY IN 2007
Changes to Dacia network strategy
For the roll-out of Logan in Western Europe, the distribution networks were
structured using the existing Renault networks. The approach adopted keeps
the brands separate (different contracts and images).
To ensure that sales outlets provided suffi cient coverage, and to minimize
investments, a number of Dacia corners were set up in Renault showrooms.
The roll-out of the Dacia brand in Western Europe has proved to be a huge
success. In France, Dacia ranked fourteenth on the market in 2007 with
32,637 car/LCV registrations.
Additional NV display areas are required to underpin the drive to double Dacia’s
European sales volumes between 2007 and 2009, and support the launch
of two new models, alongside the accelerated development of the Renault
range. A pragmatic approach has been adopted, through which separate Dacia
showrooms will gradually be put in place, according to the potential of local
markets.
CASH MANAGEMENT IN AUTOMOBILE
For Automobile, the Renault group has established a fi nancial organization
whose aims are to:
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automate the processing of routine cash infl ows and outfl ows, with improved
security and reliability;
pool the surplus cash of Group subsidiaries and meet their refi nancing
requirements;
centralize the handling of euro-denominated and foreign-exchange
transactions for better management of currency, interest-rate and counterparty
risks, while reducing fi nancial and administrative costs;
centralize all fi nancing operations, including securities issuance, bank loans
and credit agreements, at parent-company level.
Within this framework, Renault’s Corporate Treasury Department, in charge
of cash management and fi nancing for the Group’s industrial and commercial
activities in France and Europe, has two entities specialized in:
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the centralization of Group cash fl ows (Société Financière et Foncière);
capital market trading, after intra-Group netting: forex, fixed-income
securities, short-term investments (Renault Finance).
In 2007 Renault’s Corporate Treasury Department reviewed its arrangements
for centralizing Group cash fl ows. This will involve closing Société Financière
et Foncière in 2009, and increasing the involvement of Renault Finance in
cash fl ow management.
Renault Finance
Renault Finance, a Swiss corporation based in Lausanne, is an active player on
the forex and fi xed-income markets and in the market for hedging industrial
metals transactions. It respects strict rules on risk management in all its trades.
Through its arbitraging business, it can obtain competitive quotes for all fi nancial
(2) For more information about RCI Banque and its business, visit www.rcibanque.com.
RENAULT AND THE GROUP 01
PRESENTATION OF RENAULT AND THE GROUP
products. The company is therefore Renault’s natural counterparty for most of
Automobile’s capital market transactions. By extending that service to the Nissan
group, Renault Finance has become the Alliance’s trading fl oor.
As part of the reorganization of cash flow management procedures for
Automobile, Renault Finance will manage foreign-exchange payments
for French and European subsidiaries. It could thus contribute to managing
the cash balances of some subsidiaries.
At end-December 2007, parent-company net income was €40.3 million
(against €41.8 million at end-December 2006) and total parent-company assets
amounted to €4. 218 b illion (versus €5. 287 b illion at end-December 2006).
Société Financière et Foncière
Société Financière et Foncière (SFF) is a fully-fl edged bank within the Renault
group.
SFF is in charge of virtually all cash fl ows of Renault as well as the fi rst-tier and
second-tier subsidiaries of Automobile in France and Europe. It also processes
commercial cash fl ows for Nissan France and equalization payments for Nissan
in Europe.
The current system, through which SFF centralizes cash fl ows for Renault and
its subsidiaries, will gradually be replaced by a cashfl ow platform involving
almost 200 Group entities and managed by Renault SA.
The decentralization of cash fl ows processed by SFF, including commercial cash
fl ows for Nissan France, started in 2007 and will be completed at end-2008.
In 2007, SFF reported parent-company net income of €6.15 million, compared
with €4.33 million in 2006. Total parent-company assets at December 31, 2007
amounted to €340 million (€314 million at December 31, 2006).
1.1.3.2 SALES FINANCING ✦
Sales Financing’s activities are handled by RCI Banque 2 and its subsidiaries.
RCI Banque is the entity that fi nances sales and services for the Renault group
brands (Renault, Dacia, Samsung) worldwide and for the Nissan brand, mainly
in Europe.
The role of the RCI Banque group is to provide a full range of fi nancing solutions
and services for its three main customer constituencies:
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consumers and corporate clients, for which RCI Banque provides credit
solutions for the acquisition of new and used vehicles, rental with purchase
option, leasing and contract hire, as well as the associated services, namely
contracts for maintenance, extended warranty, insurance, assistance and
fl eet management;
the networks that distribute Renault, Nissan and Dacia brands, for which RCI
Banque fi nances inventories of new and used vehicles and spare parts, as
well as their short-term cash fl ow needs.
RCI Banque is thus a key partner in Renault Commitment 2009.
At December 31, 2007 the RCI Banque group had total assets of €25.7 billion,
and a workforce of 3,116, of which 44.1% was based in France.
✦ Global Reporting Initiative (GRI) Directives Registration Document Renault 2007 15
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